This following headline comes from a real estate law website:
Agent faces consequences for drafting side agreement in sale
A dual agent who drafted a side agreement between the buyer and seller in attempting to close a sale found that the extra paperwork exposed him to increased liability, as the buyer later sued him for negligence in connection with the agreement, and won.
I’ve blogged in the past about dual agency but since it’s been awhile, I thought I’d write about this topic again.
Dual agency is when a real estate agent represents both the Buyer and Seller in a transaction. In the industry, this is also known as “double ending” the transaction. Most agents get real excited when you mention double ending as this means they will make twice as much on the commission since they get both sides of the transaction.
Some Buyers still think there is an advantage of dealing directly with the Listing Agent but I don’t see ANY advantage. It’s like having a divorce lawyer that represents both the husband and wife. You want someone representing you 100%, not 50% which is as good as you’re going to get if you let an agent represent both sides.
I guarantee you that most agents will do what it takes to hold a transaction together to make both ends of the commission. Do you think they will working for the Buyer’s best interests, the Sellers, or their own??
If you think you’re going to save money by buying a house directly from the Listing Agent, chances are that you are wrong. A good Buyers agent that knows how to negotiate will save you more AND help keep you out of court.